Novo Nordisk lifts its outlook despite impairment charges
The Danish drugmaker raised its annual adjusted sales and operating-profit outlook on higher expectations for GLP-1 products. Quarterly sales and adjusted operating profit grew at constant exchange rates, while reported operating profit fell. Noncash impairments weighed on that result, and the comparison quarter included substantial transformation costs across the company.
Economics & Markets··Midday
Annual outlook improves after quarterly results
Novo Nordisk raised its full-year outlook alongside the third-quarter results announced on November 4.[1], [2]
The Danish drugmaker now forecasts adjusted annual sales and operating-profit growth between minus 2 per cent and plus 2 per cent at constant exchange rates. Management attributed the improvement to stronger expectations for GLP-1 product sales. Quarterly net sales reached 79,195 million Danish kroner, increasing 6 per cent in kroner and 4 per cent with exchange-rate changes removed.[1]
Impairments reduce reported operating profit
Reported operating profit was 23,011 million kroner, down 9 per cent at constant exchange rates. The quarter included 8.7 billion kroner in noncash impairments: 4.6 billion kroner related to ziltivekimab and 4.1 billion kroner to resizing the manufacturing network. Adjusted operating profit increased 27 per cent on the same currency basis, reaching 31,720 million kroner.[1]
Earlier transformation costs affect the comparison
The prior year’s third quarter included 9 billion kroner in company-wide transformation costs. Novo Nordisk said GLP-1 sales and that comparison base supported adjusted profit growth. The company excludes exceptional and non-recurring items outside normal operations from its adjusted measures. Over the first nine months, adjusted sales were 227,746 million kroner, up 2 per cent at constant exchange rates.[1]
